Uh-oh! Bernanke gave a whole speech last night titles " Fostering Financial Stability " at the Federal Reserve's Stone Mountain, Georgia conference and didn't say one thing about more quantitative easing – not even a hint. Without an endless supply of MORE FREE MONEY from the Fed – what is going to hold our markets up at these inflated levels? Goldman Sachs immediately covered their assets, putting out a note indicating " A number of factors reinforce our desire to be more cautious about the data in the near term :" First, our US forecast has continued to embody a relatively flat 2%-ish type GDP growth trajectory, so the notion that acceleration is now coming to an end is consistent with that forecast view. Second, we have become more confident that the weather has played an important role in some earlier data strength. The payback here may have begun, but there is probably more ahead. There is also rising focus on the US "fiscal cliff" at the end of this year, as Alec Phillips has described. Third, in the current post-bust setting, even modest slowing in growth feels more dangerous than normal. Fiscal policy is consolidating and conventional monetary policy has been exhausted in many places. And with plenty of leverage in parts of the global economy, slowing growth quickly also raises questions about debt sustainability in places. As a result, financial risks can re-emerge more quickly than normal as growth slows. And, as pointed out by Business Insider – Goldman Sachs can't possibly be wrong. Not because they are smart, nor because they are amoral, evil, greedy, manipulative bastards (allegedly) – but because they talk out both sides of their Corporate mouth so they can always point back at something to "prove" they called it. Kind of like Cramer's daily flip-flop scam only with more people. Business inside points out that while Jim O'Neill is on CNBC standing behind Peter Oppenheimer and Abby Cohen's bullish calls for the retail suckers who watch TV for investing advice, the official firm stance of David Kostin (Chief Equity Strategist) and Stuart Kaiser, who put out the above note – is, in fact, BEARISH. That's the funny thing about Corporations, they want to be treated like people when it comes to bribing the politicians of their choice but when they do something that would land people in jail, …

Uh-oh!

Bernanke gave a whole speech last night titles "Fostering Financial Stability" at the Federal Reserve's Stone Mountain, Georgia conference and didn't say one thing about more quantitative easing – not even a hint. Without an endless supply of MORE FREE MONEY from the Fed – what is going to hold our markets up at these inflated levels?

Goldman Sachs immediately covered their assets, putting out a note indicating "A number of factors reinforce our desire to be more cautious about the data in the near term:"

First, our US forecast has continued to embody a relatively flat 2%-ish type GDP growth trajectory, so the notion that acceleration is now coming to an end is consistent with that forecast view.

Second, we have become more confident that the weather has played an important role in some earlier data strength. The payback here may have begun, but there is probably more ahead. There is also rising focus on the US "fiscal cliff" at the end of this year, as Alec Phillips has described.

Third, in the current post-bust setting, even modest slowing in growth feels more dangerous than normal. Fiscal policy is consolidating and conventional monetary policy has been exhausted in many places. And with plenty of leverage in parts of the global economy, slowing growth quickly also raises questions about debt sustainability in places. As a result, financial risks can re-emerge more quickly than normal as growth slows.

And, as pointed out by Business Insider – Goldman Sachs can't possibly be wrong. Not because they are smart, nor because they are amoral, evil, greedy, manipulative bastards (allegedly) – but because they talk out both sides of their Corporate mouth so they can always point back at something to "prove" they called it. Kind of like Cramer's daily flip-flop scam only with more people.

Business inside points out that while Jim O'Neill is on CNBC standing behind Peter Oppenheimer and Abby Cohen's bullish calls for the retail suckers who watch TV for investing advice, the official firm stance of David Kostin (Chief Equity Strategist) and Stuart Kaiser, who put out the above note – is, in fact, BEARISH.

That's the funny thing about Corporations, they want to be treated like people when it comes to bribing the politicians of their choice but when they do something that would land people in jail,…